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    Macroeconomics Study Set 10
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    Exam 5: Saving and Investment in the Open Economy
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    When a Temporary Adverse Supply Shock Hits a Large Open
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When a Temporary Adverse Supply Shock Hits a Large Open

Question 39

Question 39

Multiple Choice

When a temporary adverse supply shock hits a large open economy,it causes the current account to ________ and investment to ________.


A) fall; fall
B) rise; remain unchanged
C) fall; remain unchanged
D) rise; fall

Correct Answer:

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